Dollar Declines on Soft US Labor Market News

The dollar index (DXY00) on Wednesday fell by -0.50% and posted a 5-week low.  The dollar was undercut by Wednesday’s weak Nov ADP report, which was dovish for Fed policy and cemented expectations for a Fed rate cut at next week’s FOMC meeting. The dollar failed to find support from Wednesday’s Nov ISM services index, which unexpectedly rose to a 9-month high. President Trump said on Tuesday that he will announce his selection for the new Fed Chair in early 2026.  Bloomberg reported last week that Nationa ...